Floating charge

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A word about credit risk mitigation Go Premium Well - we all do, now and then, when spring is upon us. Legal security: Mortgage • Pledge • Lien • Bailment Equitable security: Charge • fixed • floating | ABWOS | Equitable lien Credit risk mitigation: Title transfer | Guarantee | Letter of credit | Netting Friends and relations: Rehypothecation | Equivalent Documents: 1994 NY CSA | 1995 CSA | 1995 ISDA CSD (English law) Regulation: LPA 1925 | Financial Collateral Regulations | LPMPA 1994 Index: Click ᐅ to expand: Taking security Security Collateral Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

A “floating” charge — fondly known by legal witterati as a “floater”, is a security interest, which hovers in the æther, allowing the assets to move in and out of the custody account unhindered, but upon an enforcement event suddenly clamps down — the technical term is that it “crystallises” — on whatever is in the account and becomes a “fixed” charge.

See also

• Fixed charge
• Security interest
• Light brown floater